Renewable Based Shunt Reactor Market Size - By Phase, By Insulation, By Product, Analysis, Share, & Forecast, 2025 - 2034

Renewable Based Shunt Reactor Market Size

The global renewable based shunt reactor market was valued at USD 772.6 million in 2024 and is expected to reach USD 1.9 billion by 2034, growing at a CAGR 9.7% from 2025 to 2034. The expansion of shunt reactors globally is simultaneous to the growth in renewable energy projects, which is fueling the renewable shunt reactor market.
 

This growth creates the need for further solutions to grid stability, which is particularly important for wind and solar farms. In Europe, the European Union Renewable Energy Directive mandates that member states achieve a target of 42.5% renewable energy consumption by the year 2030, which also helps in investing in shunt reactors for power modulation.
 

Moreover, the renewable based shunt reactor market is fueled by government aids, renewable energy regulations, as well as investments into the grid. The transition towards decentralized energy sources coupled with the need for more efficient energy transfer over long distances is what drives the shunt reactors market. In September 2023, the U.S. DOE put forth the plan of USD 10.5 billion investment in modernizing the grid and embracing newer resilience programs, out of which a significant amount will be portioned for shunt reactors.
 

In addition, shunt reactors can be integrated into modern energy systems due to their technological advancements including enhanced energy efficiency, meager volume, and other compact designs. In 2023, the European Commission’s REPowerEU plan set aside funds for the renovation of the power grid infrastructure and in particular USD 30.44 billion was earmarked for the upgrading of power grid facilities such as electricity power converters and HVDC transmission systems.
 

The pursuit of reducing carbon emissions and compliance with international climate obligations drives the expansion of renewable energy technologies, increasing the need for shunt reactors. In addition, the market is bolstered by the public and private investments in electrification of the developing countries. In October 2023, the Indian Ministry of Power disclosed an overhaul USD 28 billion comprehensive grid expansion plan that incorporates heavy shunt reactor investments for better integration of renewable energy.
 

Renewable Based Shunt Reactor Market Trends

• The renewable-based shunt reactor industry is expanding as power grids integrate more wind and solar energy sources. These reactors maintain grid stability by managing voltage fluctuations from variable renewable power generation. The U.S. Department of Energy reports that renewable energy sources accounted for 21.5% of utility-scale electricity generation in 2022, necessitating advanced grid stabilization equipment.
   
• The development of the based shunt reactor market is aided by government policies regarding renewable energy and regulations on grid stability. The adoption of smart grid technology has also caused advancements in the design of shunt reactors, making them more compatible with power networks. The Department of Energy of the United States has reinvested USD 13 billion towards enhancing infrastructure and smart grids for transmission systems as part of their grid resilience investments in November 2022.
   
• Moreover, the renewable based shunt reactor market is improving with the incorporation of remote monitoring tools to increase their performance reliability. The latest reactors enhanced with IoT capabilities and real time analytics can help predict maintenance issues thus reducing ineffective expenditures and downtime. EU Horizon Europe program has allocated funds of 100.25 billion US dollars for the 2021-2027 period for the continued advancement of smart grid technologies, particularly digital monitoring systems for power systems infrastructure.
   
• On the other hand, the renewable based shunt reactor market has been moving toward hybrid shunt reactors for more sophisticated the needs of the grid. This movement is fostering partnerships between traditional energy producers, manufacturers, and grid operators as they strive to optimize the more advanced renewable energy systems. In December 2024, the UK government executed the Prime Minister's Plan for Change, which seeks to promote investment in the grid and clean renewable energy by 2030. This policy is hoped to increase the UK’s GDP by 41.99 billion dollars a year.
   

Renewable Based Shunt Reactor Market Analysis

• The renewable based shunt reactor industry across the phase segment is categorized into single and three phase. The market size was valued at USD 615 million, USD 690.7 million and USD 772.6 million in 2022, 2023 and 2024 respectively. The three-phase renewable-based shunt reactor industry is anticipated to exceed USD 1.2 billion by 2034.
   
• The three-phase segment is expanding with the sustained growth of clean renewable energy projects and the increasing demand for solutions for stabilization of the grid. Three-phase reactors are more effective in regulating reactive power and help decrease transmission losses in high-capacity grids. As stated in the U.S. Department of Energy’s 2023 Grid Modernization Initiative, USD 220 million has been set aside for technologies aiding in modernizing the grid, such as advanced shunt reactors.
   
• Single-phase reactors are used in smaller, decentralized renewable systems and can be applied in particular custom grids. In areas with a significant integration of renewable energy sources, the demand for grid reliability drives investment in shunt reactor technologies. The European Union’s Renewable Energy Directive (RED III) obliges the member states to simplify the permitting processes for infrastructural projects including shunt reactor installations on the grid.
   
• Furthermore, policies promoting the adoption of renewable energy in conjunction with the building of smart grids to initiate changes to make the single phase and three phase shunt reactors more efficient. China’s national energy administration has revealed plans to invest USD 391 billion toward the enhancement of grid stability, particularly to aid in the compensation of reactive power and neutral energy.
   

• The insulation segment in the renewable based shunt reactor market includes oil immersed and air core. The oil-immersed insulation segment across the renewable based shunt reactor holds a market share of 62.8% in 2024 and is poised for significant growth, with a projected CAGR surpassing 9% through 2034.
   
• The oil immersed segment is driven by the insulation and cooling efficiency technology applied to high voltage electrical equipment. Also, advances in transformer oil technologies enhance its insulation and overall efficiency. By August 2024, the Biden administration plans to allocate 2.2 billion dollars towards the GRIP program in an attempt to improve power grid reliability and resilience by adding close to 13 GW of new transmission capacity across 18 states.
   
• Air-core reactors are increasing in adoption for applications that need lightweight and low-maintenance solutions, especially in decentralized renewable energy systems. Their basic design and ability to operate in harsh environments make them suitable for remote wind and solar installations. In February 2025, Proxima Fusion, a German startup, revealed the first commercial fusion power plant blueprint, developed with the Max Planck Institute, using AI-driven simulations and stellarator research for sustainable energy.
   
• Furthermore, the market focus on sustaining ecology is helping to improve the performance of both types of insulation by making them more environmentally friendly. In November 2024, China’s NEA had issued 1.23 billion green electricity certificates. Out of these, 530 million (43.01%) were from wind and 197 million (16.02%) were from solar, which helps the country meet its carbon neutrality objectives.
   

• The U.S. renewable-based shunt reactor market is estimated at USD 80.4 million, USD 88.7 million, USD 97.5 million in 2022, 2023 and 2024 respectively. The market is further forecasted to surpass USD 210 million by 2034, driven by the rapid expansion of renewable energy capacity and the ongoing modernization of the country’s power grid.
   
• The increasing penetration of wind and solar power associated with increased variability in electricity generation, has heightened the requirements for better voltage control and grid stability, where shunt reactors are instrumental.
   
• Market expansion is supported by favorable government policies, grants for renewable energy initiatives, and considerable capital expenditures on both the construction of high voltage transmission lines and the expansion of transformer substations. Furthermore, the adoption of smart grid technologies and the movement for decarbonization are promoting the innovative use and increasing the adoption of renewable-based shunt reactors in the U.S.
   
• In Europe, the deployment of renewable energy sources into existing grids is of primary interest as member states are trying to minimize grid instability caused by the solar and wind energy power variability. Great Britain spends heavily on offshore wind parks which increase the need for advanced shunt reactors assist in the power transmission stability.
   
• For instance, in February 2024, Germany has launched a tender for 5.5 GW of offshore wind capacity, including areas in the North and Baltic Seas. The tender interfaces with the desired energy transition requirements of the country, pivoting towards offshore renewable energy expansion. It also shows Germany’s intention to move towards carbon neutrality and increase its offshore wind energy capacity.
   
• The expanding renewable energy projects in the Asia Pacific region, especially solar and wind farms, increase the need for power grid stabilization products such as shunt reactors. China, the biggest economy in the Asia Pacific, is also making considerable investments into ultra-high voltage (UHV) power transmission systems.
   
• As stated by the national energy administration of China, the nation has added 217GW of new renewable energy capacity in 2023 which certainly requires new advanced shunt reactors to handle grid fluctuations and power quality issued to be managed all over the energy network.
   
• Enhanced investment in solar project development driven by the abundance of sunlight in the region is opening the market for renewable based shunt reactors in the Middle East & Africa region. Increased investment in smart grid technologies will bode well for this demand.
   
• Saudi Arabia is leading the market with it’s Vision 2030 initiative which strives for more on-shore and off-shore renewable energy resources coupled with grid modernization as a strategy to enhance energy security.
   

Renewable Based Shunt Reactor Market Share

The top 6 companies operating in renewable based shunt reactor industry include Siemens Energy, Hitachi Energy, Toshiba Energy, CG Power, Hyosung Heavy Industries, and Fuji Electric. These companies have established themselves as key players by offering innovative solutions and maintaining a strong global presence and have a market share of more than 40% in 2024 and are expected to grow their share further in the coming years.
 

General Electric (GE) has the largest share in the renewable based shunt reactor market owing to its strong shunt reactor technological capabilities and integration solutions design. The company’s product shunt reactor portfolio supports enhanced voltage fluctuations and reactive power flow management to ensure gride stability during ever-increasing renewable energy consumption across the world.
 

In December 2023, GE Vernova and Mytilineos Consortium won a bid to implement the UK’s first high-capacity subsea electricity link. This will facilitate the renewable energy transfer between Scotland and England, which has historically been limited, and will help strengthen the overall grid in the UK while progressing towards full carbon neutrality.
 

Renewable Based Shunt Reactor Market Companies

• Siemens Energy’s projects include shunt reactors which boost efficiency and stability in electric power grids. The company’s technologies facilitate energy power transmission and provide capabilities for supporting renewable energy sources. Siemens recently completed the largest offshore wind farm in the US, which will generate 800MW, with the necessary transmission equipment in conjunction with other firms in November 2021.
   
• Hitachi Energy is focused on the development of high voltage equipment and transformers including shunt reactors for the integration of renewable sources. The company specializes in voltage and reactive power management in power systems. In March 2023 Transgrid contracted Hitachi Energy to provide 15 nq 500kV shunt reactors with expectations of utilizing them in the VNI West and HumeLink projects.
   
• Toshiba Energy supplies shunt reactors for integration of renewable energy systems. These products offer robust capabilities to ensure system stability with the inclusion of renewable sources. In July 2024, Toshiba announced the expansion of its power transmission and distribution equipment, making new investments of USD 6.7 million in India.
   
• CG Power and Industrial Solutions Limited specializes in supplying shunt reactors for voltage regulation of renewable energy sources and their integration into the power systems. CG Power products are expected to enhance the efficiency and reliability of the system. In 2023, CG Power supplied India’s first Green Energy Corridor project with shunt reactors.
   
• Hyosung Heavy Industries supports the installation of sustainable energy sources with their shunt reactors manufactured for reactive power management in renewable energy grids. Eskom’s 343 MW BESS project commenced in South Africa in August 2022 with the objective of enhancing grid stability integrating renewable energy and improving power reliability, all of which aid in the country’s transition to a sustainable energy future.
   

Major players operating in the renewable based shunt reactor market are:

• CG Power & Industrial Solutions
• Fuji Electric
• GBE
• GE
• GETRA
• Hitachi Energy
• Hyosung Heavy Industries
• NISSIN Electric
• SGB SMIT
• Shrihans Electricals
• Siemens Energy
• TMC Transformers Manufacturing Company
• Toshiba Energy Systems & Solutions
• WEG

Renewable Based Shunt Reactor Industry News

• In November 2024, Hyosung Heavy Industries secured a USD 0.20 billion contract with Ørsted to supply components for an offshore wind project. The agreement expands Hyosung's presence in the renewable energy sector. The project is part of Ørsted's offshore wind capacity expansion, with Hyosung providing electrical equipment for the infrastructure.
   
• In October 2024, Hitachi Energy scaled up its variable shunt reactor (VSR) technology to 500 kV, designed to support wind power applications. This innovation enhances grid stability and efficiency by managing reactive power and voltage fluctuations. The advanced VSR helps integrate large-scale renewable energy, enabling reliable transmission and accelerating the global transition to sustainable energy systems.
   
• In July 2024, Toshiba announced a USD 6.7 million investment to expand production capacity for power transmission and distribution equipment in India. This initiative aims to meet growing energy demands, support renewable energy integration, and strengthen India's power infrastructure, aligning with the country’s sustainable energy and economic growth objectives.
   
• In February 2024, Grid Solutions department of General Electric procured orders from India’s Power Grid Corporation for 765 kV shunt reactors. The project is aimed at enhancing grid stability and support clean energy integration in Karnataka and Rajasthan. GE will manage the manufacturing, design, testing, and commissioning. The reactors will be manufactured at Vadodara manufacturing plant of General Electric, with delivery scheduled for the 2025-26 financial year.
   

This renewable based shunt reactor market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Phase

• Single phase
• Three phase

Market, By Insulation

• Oil immersed
• Air core

Market, By Product

• Fixed shunt reactors
• Variable shunt reactors

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
• Latin America
  • Brazil
  • Argentina